Novanta beats Q2 revenue estimates on organic growth, raises 2026 guidance
NOVT•Outlook
- Novanta sees Q3 2026 GAAP revenue between $300 mln and $304 mln
- Company expects Q3 2026 Adjusted EBITDA of $74 mln to $77 mln and Adjusted Diluted EPS of $0.95-$1.00
- Novanta raises full-year 2026 guidance, sees GAAP revenue at $1.13 bln to $1.14 bln, Adjusted EBITDA at $273 mln to $278 mln, and Adjusted Diluted EPS at $3.68-$3.74
Overview
- US medical technology supplier's Q2 revenue rose 10%, beating analyst expectations
- Adjusted diluted EPS for Q2 increased 17%, beating analyst expectations
- Company closed Riverpoint Medical acquisition, expected to boost growth and profitability
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $265.80 mln | $262.30 mln (3 Analysts) |
| Q2 Adjusted EPS | Beat | $0.89 | $0.83 (3 Analysts) |
| Q2 Consolidated Net Income | $12.50 mln | ||
| Q2 Adjusted EBITDA | Miss | $60.70 mln | $61.41 mln (3 Analysts) |
| Q2 Adjusted Operating Income | Beat | $47.50 mln | $45.48 mln (3 Analysts) |
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell". The average consensus recommendation for the electronic equipment & parts peer group is "buy." Wall Street's median 12-month price target for Novanta Inc. is $175.00, about 9.7% above its August 4 closing price of $159.49. The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 35 three months ago.
